According to a report by Amlak newspaper, the Saudi market is facing a severe wave of exorbitant real estate price hikes that will have a negative impact on the economic stability of small and medium-sized enterprises, as they are unable to continue their operations in light of commercial property owners demandingexorbitant rent increases.

Well-informed sources confirmed that rent increases for some stores have reached 650%, leading tenants to vacate the premises and cease their commercial and economic activities, despite tenants" willingness to accept a reasonable increase of up to 60% of the previous rent amount, Real estate experts have emphasized that the insane rise in rents for showrooms and commercial stores in Saudi Arabia threatens small businesses that rely on providing their services through stores and showrooms, following the rise in rents for commercial buildings and showrooms on shopping streets, which means they will be forced out of the market if rents continue to rise at this rate. It is unreasonable for the annual rent of a small showroom—no larger than 25 square meters—to jump from 60,000 to over 450,000 without any logical justification.

In the same vein, a number of businesspeople called for state agencies to intervene to establish a specific mechanism for drafting commercial office leases, similar to the standardized lease agreement for the residential sector, to protect the rights of all parties, and to set a cap on rent increases imposed by landlords. They also warned that the exit of companies from the market runs counter to the Kingdom’s Vision 2030 and the National Transformation Program 2020, which aim to strengthen the presence of small businesses and enterprises in the market and diversify sources of income.